Business reporter

BHP Billiton and Rio Tinto have joined global tech firms in lobbying against efforts to stop major multinational corporations from shifting profits to low-tax jurisdictions.

In submissions to an OECD draft paper, the mining companies said measures to prevent firms from abusing tax treaties would create ''unintended consequences'' for dual-listed entities such as themselves.

Multinational firms including big pharmaceutical and global tech firms have made submissions rejecting proposals in the discussion draft. The draft identifies ways to stop companies from ''treaty shopping'' for the best places to hide untaxed profits.

It follows a push by governments around the world to limit the amount of money lost through tax-minimising structures such as those used by Google and Apple.

Irish law firm Matheson, which advises seven of the top 10 global technology companies and over half of the 50 largest banks, said the proposals unfairly targeted small jurisdictions and big companies.

It defended the practice of corporations to set up smaller subsidiaries in offshore locations.

''Multinational groups frequently have intermediate companies in their corporate structure, for various commercial reasons including centralising risk management,'' it said.

''The [proposals] should recognise this, and permit treaty access in such situations where sufficiently active business functions are being carried on with respect to such investment management operations.''

BHP and Rio Tinto, both listed on the Australian and London stock exchanges, said dual-listed entities would be unfairly affected. They said they should be exempt from the provisions ''in order to avoid what we believe would be unintended consequences''.

Australian accounting firm Pitcher Partners also made a submission claiming the proposals would result in hefty compliance costs for small-to-medium enterprises and make it ''more difficult for any taxpayer to access the benefits of a tax treaty''.

The OECD paper forms part of global efforts to stop companies from channelling millions of dollars through elaborate tax-avoidance structures.

Tax advocacy groups have welcomed the proposals, but said they could go further in proposing specific domestic laws.

On Monday, ATO commissioner Chris Jordan said the global push to limit offshore tax evasion had prompted ''unprecedented'' co-operation between government agencies.

He said an amnesty launched last month targeting wealthy individuals was already proving successful, with 16 individuals coming forward with details of their offshore account, and a further 33 agreeing to co-operate with the Tax Office.

Mr Jordan also defended a controversial plan to allow major companies to effectively audit themselves under new powers given to the big accountancy firms.

''Recent media reports claimed that in the future the ATO will allow private sector accountants to sign off on some company tax returns,'' he said. ''While this is not exactly true, we are looking to draw on the already rigorous audit processes for listed companies.

''Why not use existing processes with inbuilt integrity checks and assurances?''